THINKING BUSINESS SOLUTIONS INTERNATIONAL E-BUSINESS

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1 THINKING BUSINESS SOLUTIONS B U S I N E S S INTERNATIONAL E-BUSINESS

2 OVERVIEW E-commerce is a relatively new way to transact over the web and is considered a far more efficient way to shop and establish a business compared with a traditional bricks and mortar set up. Distribution channels are so well developed in the major economies that next-day delivery is expected and usually achieved cheaply and efficiently. An e-business will utilise IT systems and may also benefit from considerable supply chain rationalisation. Consequently, the success of an e-business venture relies heavily on expertise and efficiency at many different levels. 4 Business has the infrastructure, technology and necessary expertise to help you maximise the success of your e-business venture.

3 ABOUT E-COMMERCE COMPANY TAX Efficiency and scalability are key to success in an e-retailing business, but tax-efficiency presents the greatest opportunities of all. Because of its global nature, e-commerce presents great challenges for tax systems. Most tax systems have traditionally relied on the retailer to collect taxes, and then pay them to the taxman. Tax systems are not geared up to collect small amounts of tax from millions of transactions. In accordance to the OECD model treaty, Internet sales are taxable in the country in which the sale is effected. If your server is offshore and the payment takes place offshore i.e. via an online credit card payment, then the transaction will be deemed to take place offshore and thus will be tax resident offshore. In short, this means e-commerce entrepreneurs will save firstly on indirect taxation such as sales tax in the US and VAT at varying rates in the EU, and secondly on direct taxation of profits.

4 If you are an established e-commerce company or an electronic merchant, you should seriously contemplate taking your taxable presence into a low tax country to minimise your indirect and direct taxation liabilities. How can we help? 4 Business provides a full range of e-commerce consulting and implementation services that help companies build successful business-to-business and business-to-consumer e-commerce ventures. Our e-commerce centre in Mauritius provides services to e-commerce companies, e-distributors, electronic merchants, and IT purchasers for large companies and e-branches. We provide the following services via this centre which can be provided either individually or as a fully supported and administered package: - Domain name registration - Web design - Front-end development - Back-end solutions and programming - Internet marketing and PPC advertising - marketing - Server hosting, including branch server hosting - Offshore and onshore website hosting, design and maintenance - Facilitating merchant account for offshore entities

5 - International tax planning - Company formation and administration - Multi-currency secure credit card transaction for offshore and onshore entities - Co-location facilities are also available For more information on how we can facilitate the efficient set-up and administration of your e-business, please contact us or visit and apply online. For more information: Tel: +44 (0) Fax: +44 (0) info@4business.com

6 OUR BUSINESS SUPPORT SERVICES Find out how else 4 Business can help your business. Visit for more information: - UK Company Formation - Accounting, VAT & Payroll - Business Consulting - Corporate & Merchant Banking - HR Management Solutions - Virtual & Online Office Solutions - UK Immigration & Visa Advice - International Business & Trade - UK Property Ownership - International Payroll Solutions - Pre-paid Cards - Offshore Solutions - Virtual Office Solutions - Marketing & Sales - Domain Registration, Website & Hosting Solutions A SOLUTION FOR EVERY SIDE OF YOUR BUSINESS